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US-China Relations

The Battle for Man’s Soul – Part I

— Part I: Destroying the World Order —

Summary

Many people in the Free World have realized that the engagement policy with red China to induce transformation of its political system has not worked as expected. It is important to analyze the reasons further so that policy makers can design strategies that are more effective and will actually work. Continue reading

One Third of U.S. Companies in China Postponing or Cancelling Investment Plans

Well-known online Chinese news site Sina recently reported on a study report that the American Chamber of Commerce in China just published. The report shows that the tariff war between China and the United States has impacted two thirds of the U.S. companies in China. The next wave affecting US$200 billion in tariffs on Chinese imports will bring the impact scope to above 70 percent. Most of the impacted areas involve cost increases (47.1 percent) and reduced demand (41.8 percent). Around one third of those surveyed U.S. companies plan to postpone or cancel investment plans. Also, around one third of the companies will adjust supply chains. The most popular countries for the new suppliers are Southeast Asian counties and Indian subcontinent countries. The survey was conducted around the beginning of September. Over 430 Chamber member companies responded. Around 61 percent of these companies are in the manufacturing industry.

Source: Sina, September 13, 2018
http://finance.sina.com.cn/roll/2018-09-13/doc-ihkahyhw6731235.shtml

People’s Daily: The Fun of the U.S. Trade War May Die Down Quickly

People’s Daily recently published a commentary in its paper edition, which other media, including Business Daily, then published on-line, predicting the U.S. initiated trade war will soon see its end, although it may look like the U.S. is having a high time and fun at the moment. The “American First” slogan has been shouted for over a year now and some did see a few big steps taken. However, those in the U.S. who did not feel the “First” privileges also started complaining. With the expected big soybean harvest season this fall, Illinois farmers may not necessarily feel happy, since an average loss per acre of soybeans is estimated at US$100. Trump’s US$12 billion federal help may offer a maximum subsidy per acre of US$14. While the U.S. government may not care about the individual farmer’s checkbook, still, the bigger picture does not look rosy either. The U.S. trade deficit in June posted its highest increase in one and one-half years. In the meantime, the U.S. policy makers seem to have suddenly gone completely deaf. They simply ignore the loud and clear voices from the U.S. industries and from around the globe. This is apparently the symptom of a high fever. The dying-down of the fun of “American First” is just a matter of time.

Source: Business Daily, August 16
http://www.nbd.com.cn/articles/2018-08-16/1245887.html

China News: Republicans are Optimistic about Mid-Term Election

China News recently reported that the U.S. Republican Party members would have had many reasons to feel upset or even to panic since the Trump summit with Russian President Putin caused a massive domestic media coverage disaster. However, the Republicans have, in fact, remained calm and even optimistic about the up-coming mid-term election. They expressed the belief that the constant infighting among Democrats is helping. Some members of the Republican National Committee observed that, ever since Hilary Clinton lost the presidential election, the conservatives in the Democratic Party have been under heavy attack from the liberals. This trend has caused many Democrats to move further towards the left. The Republicans thought that the infighting significantly blurred the focus on impeaching the President, weakening ICE, and blocking the confirmation of Brett Kavanaugh as Supreme Court Justice.

Source: China News, July 24, 2018
http://www.chinanews.com/gj/2018/07-24/8577456.shtml

As a Result of Tightened Control, Chinese Think Tanks Could Not Give Accurate Assessment of the Trade War

Radio France International carried an article that the South China Morning Post had originally published. The analytical article stated that the reason that the Chinese think tanks gave an incorrect assessment of the trade war was that all these think tanks have to mouth the “party’s voice.” Beijing’s tightened control of ideology on all levels, especially at the college campuses, requires that they must closely follow the party line. Any discussion of government policy without permission could be regarded as “acting wantonly and issuing groundless criticism of the party’s decisions and policies.” It could result in punishment. According to the article, since the top priority of Beijing’s policy is to maintain the party’s power, some policy advisers have avoided in-depth discussions with U.S. think tank researchers and have thus missed the opportunity to understand Washington’s latest thinking and ideas. The article also cited other incorrect approaches that China has taken, including the fact that Beijing hoped to use Former U.S. Treasury Secretary Paulson and Former Secretary of State Kissinger as a “back-door” channel to understand U.S. policy. However, Trump doesn’t even talk to these people. Beijing has seriously underestimated the anti-China sentiment among the upper class in the U.S.

Source: Radio France Internationale, July 27, 2018
http://cn.rfi.fr/%E4%B8%AD%E5%9B%BD/20180727-%E5%8D%97%E6%97%A9%E9%94%99%E8%AF%BB%E7%89%B9%E6%9C%97%E6%99%AE%E6%94%BF%E7%AD%96%E4%B9%83%E4%B8%AD%E5%9B%BD%E6%99%BA%E5%BA%93%E7%BB%9F%E7%BB%9F%E5%A7%93%E5%85%9A%E7%9A%84%E5%90%8E%E6%9E%9C

Global Times: China Heavily Criticized U.S. Trade War Arguments for Five Days in a Row

Global Times reported on July 20 that Hua Chunying, spokeswoman of the Chinese Ministry of Foreign Affairs, has heavily criticized the U.S. positions on the trade war against China for the fifth day in a row. Hua called out Peter Navarro, Director of the White House National Trade Council, and suggested his comments on the U.S. “suffering a loss” in trade with China is “reversing black and white.” She said that Navarro’s “nonsense” was just designed to fool those American people who did not want to have the trade war. Hua gave the examples of General Motors and Apple. The Chinese market supplied 58 percent of GM’s annual sales, and China only made 1 percent out of the US$649 average iPhone 7 retail price. Hua asked where the “U.S. loss” was. She concluded that a lot of Americans are “living in their imaginations,” and are attacking other countries “just for domestic political fights.” She expressed the belief that the U.S. is the biggest threat to the world’s stability.

Source: Global Times, July 20, 2018
http://world.huanqiu.com/exclusive/2018-07/12536498.html

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